Get personalized advice
Universal Loan Insurance
Universal Loan Insurance covers all your loans under one policy in case of disability.
What is Universal Loan Insurance?
Universal Loan Insurance is coverage that protects all your loans in case of disability. It helps you keep making payments on your loans, even if you lose income because of a disability caused by an accident or illness.
With this protection, you can cover all your family’s loans with just one policy. If you rent and don’t have a mortgage, you can even use it to cover your rent payments.
How does it work?
In the event of a disability caused by an illness or accident, you receive a monthly, non-taxable benefit to help you make your debt payments, as well as your rent payments if you are a tenant.
You can use it to cover several loans: mortgage (or rent), credit card, line of credit, student loan, car loan or rental, etc. The loans covered can be changed as your situation evolves over time.
Your benefits are not integrated, which means that they’re paid directly to you, even if you receive other disability insurance benefits, from your group insurance, for example.
It’s an ideal solution if you are:
- a family who wants insurance for all your family’s debts in case of disability, including your mortgage
- a tenant looking for coverage to insure rent and loan payments
- a young professional who has accumulated a few debts, like student loans or a car loan
- an employee who is already covered under a group disability insurance plan, but wants additional disability insurance coverage to help with loan payments and to reduce the impact of a loss of income
Advantages of Universal Loan Insurance:
- Monthly, non-taxable benefits
- All your loans can be covered under the same policy
- Rent payments can be insured if you are not a homeowner
- Loans can be insured for up to $10,000 per month
- Coverage can be transferred from loan to loan throughout the life of the contract
- Less expensive than insurance from a bank –it’s more advantageous to cover all your payments under one policy than paying for separate insurance for each loan
Additional information
Eligibility
Canadian citizens:
- Be between 18 and 59 inclusively at the time of application
- Working:
- at least 21 hours per week regularly and consistently; or
- at least 8 months and 1,050 hours per year; or
- at least 4 months and 1,050 hours per year (rider for seasonal workers required);
- Spouses not engaged in remunerative work are also eligible
Immigrants living in Canada for
- over 3 years: eligible under the same criteria as Canadian citizens
- under 3 years: eligible under certain conditions
Eligible loans
- Mortgage loan: Coverage for the primary residence of up to 125% of the mortgage payment to include fixed expenses, like taxes;
- Line of credit: Coverage for monthly interest payments, whether payable or not, as well as an additional monthly amount equal to 0.5% of the balance owing;
- Rent: 100% of the monthly cost for renting a primary residence. The maximum benefit period is 2 years;
- Car, boat, motorcycle or recreational vehicle loans: Insurable for lease or purchase;
- Personal, joint, commercial or corporate loans: The maximum benefit period for a commercial or corporate loan is limited to 2 years;
- Leverage loans for investment purposes: Coverage for monthly payments corresponding to the monthly interest payments on the borrowed capital;
- Credit cards: Coverage for monthly payments equivalent to the average minimum payment required for the 3 months preceding the disability plus 3% of the balance owing at the beginning of the disability.
Built-in benefits (at no additional cost)
Several additional benefits are included in your Universal Loan Insurance coverage at no additional cost.
- Gradual return to work: When an attending physician recommends a gradual return to work, the monthly disability benefit paid before the return to work is adjusted by the number of days worked.
- Coverage from day 0: For day surgery or hospitalization over 18 hours.
- Extension to age 75: Coverage may be extended to age 75, without evidence of insurability (in case of accident only and for people who are still working full time).
- Waiver of premiums in the event of total disability: You stop paying premiums for your insurance in case of total disability (subject to a minimum 30-day waiting period for total disability).
- Maintenance of coverage in the event of temporary loss of full-time work: You can maintain your disability insurance coverage for a period of up to 12 months after a job loss.
- Recurrent disability coverage: You receive benefits in case of a relapse due to the same cause as the previous disability, with no waiting period if the relapse happens within 6 to 12 months (based on occupation class).
- Reinstatement of benefits: Within the 2 years following the reduction of insured monthly benefits, you can reinstate monthly benefits up to the initial level.
Flexible optional coverage
Universal Loan Insurance offers five optional coverages and three additional riders that you can add to your insurance based on your needs.
- Partial disability: You could receive 50% of your monthly benefits if you continue working part time.
- Extension of the regular occupation period: This option allows you to increase the coverage period for your regular occupation from 2 to 5 years, or up to age 65.
- Broader definition for seasonal or contractual workers: This option qualifies you for insurance if you work 1,050 hours per year, but within only 4 months per year.
- Return of premiums: With this option, half of all the premiums you paid for your insurance are returned to you, less all claims paid.
- Coverage for a spouse without remunerative work: This provides coverage for your spouse even if they don’t have remunerative work (the maximum benefit period is 2 years).
- Death, dismemberment or loss of use: Benefit of up to $350,000 after an accident.
- Accidental fracture: Benefit of up to $10,000 in case of accidental fracture.
- Extended medical care: Reimbursement of expenses for medical care following an accident up to $100,000: hospitalization, ambulance, private home nursing, chiropractor, osteopath, physiotherapist, medications, dental accident, etc.